Monarch Casino & Resort, Inc. (NASDAQ: MCRI) has reported adjustments to its 2024 fourth quarter and full-year financial results following a recent court decision in a litigation between the company and PCL Construction Services, Inc. The court awarded damages in favor of PCL to the tune of $74,772,551 and awarded $144,894 to Monarch for its counterclaims against PCL. As a result, Monarch anticipates filing an appeal to the Colorado Court of Appeals.
The adjustments to the financial results were due to the court's judgment, which impacted the previously reported results as follows: Net income for the three months and twelve months ended December 31, 2024, were $4,211 thousand and $72,769 thousand, respectively, compared to the previously reported $25,495 thousand and $94,053 thousand, respectively. Basic earnings per share for the same periods were $0.23 and $3.91, respectively, compared to the previously reported $1.39 and $5.05, respectively. * Diluted earnings per share for the same periods were $0.22 and $3.84, respectively, compared to the previously reported $1.36 and $4.96, respectively.
However, the adjusted EBITDA (a non-GAAP measure) was not impacted by these adjustments.
Monarch's balance sheet as of September 30, 2024, included a liability of $47,008,285 due to PCL, which was adjusted as of December 31, 2024, to reflect the judgment amount. As a result, an adjustment of $27,619,372 was made to accounts payable in the December 31, 2024, balance sheet. The company recorded a corresponding expense item, loss on litigation, in the amount of $27,619,372.
The company's 2024 Form 10-K provides detailed reporting on these adjustments. Following these announcements, the company's shares moved -0.4%, and are now trading at a price of $91.23. For more information, read the company's full 8-K submission here.
